Question 1

How long does the interest-only period last?

Accepted Answer

Most products offer 5 or 10 years of interest-only payments. After that, the loan recasts and you pay both principal and interest.

Question 2

Can I qualify using bank statements instead of tax returns?

Accepted Answer

Yes. Many non-QM lenders accept 12 or 24 months of bank statements. This is common for Salinas borrowers with business income.

Question 3

What happens to my payment when the interest-only period ends?

Accepted Answer

It increases — often by several hundred dollars per month. Your loan recasts over the remaining term, which compresses the payoff schedule.

Question 4

Is this loan available for investment properties in Salinas?

Accepted Answer

Yes. Investors frequently use interest-only loans to manage cash flow on rental properties. Lenders typically require 25–30% down on investment deals.

Question 5

Will I ever pay down principal during the interest-only period?

Accepted Answer

Not automatically. You can make extra principal payments voluntarily. But your required payment covers interest only during that initial phase.

Question 6

How does this loan compare to a DSCR loan for Salinas investors?

Accepted Answer

DSCR loans qualify based on rental income from the property. Interest-only loans qualify based on your personal financial profile — different underwriting entirely.

Interest-Only Loans in Salinas, CA